High-Tax State Relocation Summary: Where the Greatest Savings Are

This summary compares all four high-tax states we model — California, New York, New Jersey, and Illinois — using the same calculator defaults:

• $200,000 W-2 wages + $100,000 business / pass-through income ($300,000 total, single filer)
• $100,000 consumer debt at 22% APR (optional — affects the pay-debt-first chart line, not the 30-year savings column below)
• Los Angeles / NYC / Newark / Chicago city selections where applicable
• Two cars, $60,000 taxable spending
• Typical 3-bedroom home prices derived from metro $/sq ft averages (not one shared purchase price)

Destination baseline: Texas (no state income tax). Florida and Tennessee follow similar patterns for income tax.

Ranked by estimated annual savings vs. Texas

Using our combined calculator summary logic (income + property + living costs + sales tax):

Takeaway: The biggest dollar savings in our model come from New York City households — state + NYC local wage tax, high property tax on ~$1.79M typical 3-bedroom home values, and elevated insurance costs stack on top of zero Texas income tax.

California ranks second on income and lifestyle costs even though it has no local wage tax (unlike NYC). New Jersey’s property tax rate keeps it competitive with Illinois for many families despite lower home prices than NY.

Consumer debt and the cost of staying

The 30-year savings column matches the combined calculator debt-free headline: annual tax-and-cost savings plus the one-time benefit of buying a typical 3-bedroom home for less in Texas, all compounded at 6% over 30 years. If you enter consumer debt, the calculator also shows a pay-debt-first path (orange line) — debt interest (~$22,000/yr on $100,000 @ 22% APR) is shown separately and is not subtracted from annual savings.

State-by-state quick links

California

• Relocation guide · Exit & residency · Pending proposals
• Default city: Los Angeles (state tax only — no CA city wage tax)

New York

• Relocation guide · Exit & residency · Pending proposals
• Default city: New York City (state + local brackets in calculator)

New Jersey

• Relocation guide · Exit & residency · Pending proposals
• Default city: Newark (no local wage tax; property tax dominates)

Illinois

• Relocation guide · Exit & residency · Pending proposals
• Default city: Chicago (flat 4.95% state tax; no city wage tax)

Best destination states for savings

Among destinations we cover, these consistently score well for leavers from all four origins:

1. Texas — No state income tax; moderate 3-bedroom home prices in our model (~$372k state average); watch property tax rate and insurance
2. Florida — No state income tax; homestead rules; coastal wind insurance can offset gains
3. Tennessee — No state income tax; Nashville growth corridor
4. Nevada — No state income tax; popular for former CA households

Texas and Florida are the default comparisons in most of our state guides because they combine zero state income tax with large metro job markets.

What these numbers do not include

• Federal tax changes, SALT cap interactions, or AMT
• One-time capital gains on home or business sales — see capital gains & wealth tax guide
• Exit taxes and home-sale withholding when leaving a state
• NYC vs. Westchester vs. upstate — change the city dropdown and property state in the calculators
• Non-wage income sourcing rules when you move mid-year
• QBI deductions, payroll taxes, or entity-specific business taxes

Recommended workflow

1. Start with the combined 30-year summary at the top of the calculators page — enter W-2, business income, and any consumer debt
2. Align all four calculator blocks to the same origin and destination states
3. Read your origin state’s guide, exit/residency, and pending proposals articles
4. Consult a CPA before changing domicile or triggering liquidity events

Related: Why move now · Open calculators

Relocation & reset series

This is part 1 of our cross-site relocation guide:

1. You are here — Run the numbers before you move
2. Lower home energy bills in your destination state
3. Rebuild walking & tracking habits after the move